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GM Korea may discontinue Spark mini car, Reuters reports

GM Korea may drop its Spark mini car and replace it with a crossover due to declining demand, Reuters reports. Reference Link

26

Apr

GMGeneral Motors

$37.68

-0.32 (-0.84%)

03/09/18

DBAB

03/09/18NO CHANGEDBAB

Deutshe Bank sees buying opportunities in Autos & Auto Parts

Deutsche Bank analyst Rod Lache attributes the recent selloff in Auto Industry stocks a confluence of factors, including rising rates, rising commodities/tariffs, and rising NAFTA risks. These represent a "triple-threat that has led to a resurgence of cyclical concerns," Lache tells investors in a research note. The analyst, while admitting limited visibility into the "most significant of these," the outlook for NAFTA, believes that investor concerns are overdone. He's a buyer of General Motors (GM), American Axle (AXL), and Lear (LEA) on weakness.

Morgan Stanley analyst Adam Jonas noted that auto companies' valuations have compressed to extremely low levels, but he believes that a move from a vehicle ownership model to a transportation subscriber model could expand the revenue opportunities for the potential "tollkeepers" for the monetization of content and data by "nearly an order of magnitude." Looking at U.S. technology leaders Facebook (FB) and Apple (AAPL), which are both valued on their installed base/subscriber models, can "offer valuable clues" regarding the opportunity for General Motors (GM) and other auto OEMs, said Jonas. Viewing the OEMs though the lens of a subscription model, which should be less cyclical and potentially less capital intensive over time than the current auto model, is relevant to analyzing auto stocks, according to Jonas, who adds that it is still too early to call a winner or loser in "Auto 2.0." Other publicly traded legacy automakers include Fiat Chrysler (FCAU), Ford (F), Honda (HMC), Nissan (NSANY), Toyota (TM), Volkswagen (VLKAY) and Daimler (DDAIF).

03/14/18

MSCO

03/14/18NO CHANGEMSCO

Morgan Stanley raises U.S. auto sales forecasts through 2021

Morgan Stanley analyst Adam Jonas raised his U.S. seasonally adjusted annual rate, or SAAR, forecast for automakers by an average of 850,000 units from 2018 through 2021, which represents slightly more than a 5% increase from his prior forecast. However, his average U.S. SAAR forecast is still well below last year's 17.3M units and 8% under the cyclical high of 17.6M units in 2016. Jonas points to U.S. tax reform and "relatively stable" recent trends in auto sales and credit as reasons for the hike, noting that while infrastructure action from the federal government could be a material positive, it is not explicitly in his new forecast. Adding that the higher view has a net positive impact on estimates and price targets for exposed auto Original Equipment Manufacturers, or OEMs, and suppliers, Jonas raised his price targets on General Motors (GM), Asbury Automotive (ABG), AutoNation (AN), Group 1 Automotive (GPI), Lithia Motors (LAD), Penske Automotive (PAH), Sonic Automotive (SAH) and Ford (F). He also double upgraded Ford, to Overweight from Underweight, this morning.

04/09/18

MSCO

04/09/18UPGRADEMSCOOverweight

General Motors upgraded to Overweight from Equal Weight at Morgan Stanley